A Sales Force Incentive Compensation Framework

Since the impact of a sales force incentive plan is significant and the forces at work can be subtle, it is helpful to think about sales force compensation dynamics in terms of the framework pictured in Figure 10-2.

Figure 10-2. Compensation Framework.

The framework describes three constituents affected by the compensation plan: the company, the salesperson, and the customer. These three constituents make decisions and see results. The company decides on a compensation plan. The sales force decides how it will spend its time. Although numerous factors affect the salesperson's choice of activity, the ...

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